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Proposal to cut Pa. property taxes passes in the state House

Wednesday, May 13, 2015

HARRISBURG, Pa. (AP) - Pennsylvanians would see billions in lower school property taxes under a proposal that made it out of the state House and into the hands of the Senate.

The House voted 105 to 86 on Wednesday for what supporters call the most significant action in decades on relief from the state's widely reviled property taxes.

The legislation would increase the sales tax rate in most of the state from 6 percent to 7 percent and the personal income tax rate from 3.07 percent to 3.7 percent.

Opponents warn that short-term savings will eventually be lost when schools return property taxes to current levels.

The proposal is among the items under consideration in the Legislature's most intense period of the year, leading up to the June 30 budget deadline.

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